eServGlobal sees further work ahead amid turnaround evidence

Shares in eServGlobal are down more than 3% after commenting further work is needed despite clear evidence of turnaround in full-year 2016.

"The task of a complete turnaround remains in focus," the company said in a statement.

eServGlobal said it continued to make progress on costs and new orders in the core business which, combined with significant achievements by HomeSend, provided positive indications for full-year 2017.

"We expect sufficient order flow in H1 to support our outlook of breakeven in the core business in the 12 months to 31 October 2017, and progress by HomeSend remains consistent with reaching a breakeven point during this calendar year," the company added.

eServeGlobal said the progress of its joint venture, HomeSend, was very encouraging.

"In our core eServGlobal operation, we made significant progress on costs, processes and orders. However despite the progress made, we fell short of our revenue targets at year end."

Looking ahead, the provider of innovative mobile financial technology said that costs were currently tracking below guidance with further progress being achieved in this area.

The company now expected costs to be in the region of €17m for the 12-month period to the end of October 2017.

"Previously we said 'below €18m'. This continued reduction is deliberate and is the result of continued work on our model, our structure, our processes, and our control early in FY2017."

At 10:35 GMT, shares in AIM-quoted eServglobal were down 3.39% to 7.12p each.